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RBC Ruling Strikes a Blow to Deal-Making Banks

By

Liz Hoffman

March 9, 2014 6:57 p.m. ET

One Saturday in March 2011, several bankers at RBC Capital Markets LLC were busy calling executives at Warburg Pincus LLC. The private-equity firm had bid to buy ambulance operator Rural/Metro Corp., and RBC wanted to help finance the deal.

That same day—on the final frenzied weekend of a three-month sales process—another RBC team was preparing a presentation for Rural/Metro's board that by one measure valued the company's shares between $8.19 and $16.71. That range, which made Warburg's $17.25-a-share offer look like a...